Nestled among the Rocky Mountains, Colorado is home to a natural treasure that has captivated visitors and locals for centuries: geothermal hot springs. From the tranquil waters of ancient geothermal pools to the scenic backdrops that surround them, these natural hot springs offer more than just relaxation—they hold deep cultural and therapeutic significance. For generations, people have flocked to these soothing waters, seeking healing, relaxation, and a connection to the land itself. However, as Colorado explores new ways to promote geothermal energy sources to harness geothermal heat and steam to bolster the state’s renewable energy portfolio, concerns have arisen over the potential impact on the state’s iconic hot springs. House Bill (HB) 25-1165, designed to update regulations governing geothermal resources, has sparked worries among hot spring businesses, leading to calls for critical amendments to protect both natural resources and local economies. This article describes the amendments that commercial hot springs have discussed and negotiated with the Colorado Department of Natural Resources, and which are included in the amended bill now under consideration by the Colorado Senate.

HB 25-1165, titled “Geologic Storage Enterprise & Geothermal Resources,” was introduced to clean up the statutory framework surrounding geothermal permitting. In 2023, the General Assembly first attempted an overhaul of geothermal energy permitting through Senate Bill (SB) 23-285, codified in C.R.S. § 37-90.5-101 et seq. SB 23-285 had good intentions, but it created some confusion around permitting requirements and, importantly, with respect to hot springs with vested water rights, by inadvertently deleting the definition of material injury. In the absence of a material injury provision, new permits to develop geothermal resources could be developed at the expense of existing commercial and non-commercial hot springs’ operations.

As introduced, HB 25-1165 did not contain adequate amendments to address the material injury issue, which prompted the formation of a coalition of commercial hot springs—including Glenwood Hot Springs Resort, Iron Mountain Hot Springs, Strawberry Park Hot Springs, and Mount Princeton Hot Springs Resort—to advocate for amendments to HB 25-1165 that ensure hot spring pools are protected from impairment by new geothermal energy projects. Although none have sought permitting as of yet, geothermal energy interests have announced proposals for new energy projects near existing hot springs, adding urgency to the hot springs-coalition efforts during this legislative session. At its core, the hot springs’ amendments to HB 25-1165 take steps to protect Colorado’s valuable geothermal resources by restoring previously enacted statutory protections and instituting heightened standards for new geothermal developments near existing geothermal hot springs, both natural and commercial.

The coalition of commercial hot springs has worked collaboratively and productively with the Colorado Department of Natural Resources agencies charged with managing hot springs permitting, including the Energy and Carbon Management Commission (previously known as the Colorado Oil and Gas Commission) and the Department of Water Resources, and agreed on additional language that was added to HB 25-1165, including the following types of statutory protections:

1. Recognition of and protections for “Historic Geothermal Hot Springs” which include “commercial geothermal hot springs with a vested water right,” or “a noncommercial geothermal hot spring that is accessible to and enjoyed by the public.”
2. Notice provisions, to ensure that existing geothermal hot springs operators (or government entities that maintain non-commercial hot springs for the public), are aware of and have the opportunity to be involved in new geothermal energy permitting applications.
3. Requiring applicants for a new geothermal well permit, who propose a geothermal well withdrawing tributary groundwater at a rate greater than 50 gallons per minute, and where the proposed well is in a hydrogeologic setting with the potential to materially injure an existing hot springs operation (commercial or non-commercial), to provide evidence to the State Engineer that the proposed well will not cause material injury.
4. Reinstating a definition of material injury to existing hot springs and clarifying that the definition includes “injury to any aspect of the vested water rights of a prior geothermal operation, which may include water quantity, pressure, rate of flow, mineral content, or temperature.”

What’s Next?

The current text of HB 25-1165 can be found here. The bill moves to the Senate Transportation and Energy Committee for consideration likely before the end of March, and then if passed out of committee to the entire Senate for action.

For questions regarding this legislation or hot springs water rights in Colorado generally, please contact:

• Sarah A. Klahn, sklahn@somachlaw.com
• Lindsey A. Ratcliff, lratcliff@somachlaw.com

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